Using an AIRLINE for T8

@Chandan - lack of share/dividend info is not critical for a pass provided the reasons for it are explained and the rest of the analysis is good. Many students successfully submit on Emirates - @Ehsan weren't you one of them?

No, I chose Qantas and Virgin Australia. For Emirates - Singapore Airline is best rival based on available information !

@abdulbasit16 Thank you. This is a big dilemma, both ways has some sense and some no sense. @trephena, what is your say on this? "Can you please advise whether to use Restated figures from annual reports or use original ones? e.g. 2015 annual report consists 2014’s restated figures so when doing financial analysis is it better to use restated figures of year 2014 from 2015 annual report or use original figures from 2014 annual report?" "The thing is if i use restated figures it will change YOY fall in operating profits into increase."

Period 32 Comment 8 In addition to weaknesses in some of your ratios, your business models could have been improved. You seemed to merge your SWOT into the PEST with the elements of the PEST being either Opportunities or Threats. Ideally you should use each business model independently. Also the weaknesses in the SWOT were largely dividend related, which was already covered in the ratio analysis section, consequently in your SWOT you should have introduced new material to your readers; this would have widened the scope of your analysis and improved its quality. I seem to have done a similar thing where in addition to SWOT, in PESTEL below each factor whether it relates to political or any other factor i seem to have also mentioned opportunities/threats along with each factor. @trephena @ehsan do u guys think i shud remove those opportunities and threats considering the failure comment of someone above?

I used SWOT and PESTEL and they are best and easy models to use. You need to segregate these models to gain marks and to avoid any circumstances that would lead to repetition of analyses and points. Use PESTEL to analyse outer environment and SWOT for internal competences. These two models are not one and are distinct, and in fact they complement each other and provide an all rounding view. Don't mix models - don't tell about opportunities/weakness etc.. in PESTEL. Keep them separate and you can combine them both in conclusion. Regards, Ehsan

@ch305 said: Should I show the KPIs such as Load factor and yields separately in the financial analysis or should use them for explanation of changes in profitability/revenue?

Explanation for changes in revenue/profit

Hey guys, @trephena @Ehsan just finishing up my report with 2016 analysis and overall conclusions. Just wanted to clarify that PART THREE the report, conclusion and recommendations together are meant to be 4500 words am I correct? Additionally, I was trying to get a fluid layout for my report and wondered what is the best layout for this? I dont want my report to be confusing and its points should flow easily into the others such as decline in revenue from decline in load factor and increased competition etc. Currently, the layout is PESTLE (external), SWOT then company specific ratios and strategies. M.O.S.T analysis is used as a part of conclusion, an overall look at how the airline is meeting its objectives and mission statements. Any suggestions or tips are welcome. Thank you!

@trephena and @ehsan For emirates, they experienced the threat of allegations from US carriers during the three years under analysis (march '13 to march '16). but in june '16 the decision was in favour of emirates and hence it no longer becomes a threat. Should I include it as a threat ( since it was during analysis period) or i should just exclude??

Anyone have idea where to find industry average financial ratio? I want to make comparison how ryanair is doing among others..

@ch305 said: In relation to below.. I see many problems with Emirates... Is the time left sufficient for the analysis if I move over to another company or topic perhaps?

Still one month, it is possible if you have no other time consuming commitments.

I want to use Wizz Airline as my company which was established 2003 ,a recent one In Hungary. I want to use Ryannair as its competitor airline. Both are European Low Cost Carriers. Wizz Air , is a private limited company but publishes its annual account. Can I use them for topic 8?

HI, I am doing my RAP on T8 using American airlines and Delta airlines.Any tips regading my choice are welcome. I am having trouble finding the chairman and directors report for these companies. Trepena has suggested earlier reading them is useful so I am worried I'll be at a disadvantage not having access to such reports. I also want tips on referencing.For my first 650 words in my rap with introductions and the other headings I have not referenced anything.Now I realize this does not look good.Should I be worrying about this?Referencing seems like a complicated process as I am mosly relying on websites for collecting info and there is data that have no authors but the data is definitely correct and I'm not sure if its .Also,how strict are the word limits(e.g 1000 words for introductions,reasons for choosing...,research ques.,research objs...)...Do these limits need to be exact? Thanks

Take a look on the investor relations section of their websites as (American filed accounts usually are just financial statements) and you may find them there. They help with the SWOT. Yes you need to reference well throughout. See the Open Tuition Ultimate Guide to referencing (all 3 parts) on our homepage www.opentuition.com/obu It may seem complex but I have tried to simplify it. Quite simply if you don't reference adequately you are likely to fail so you will be wasting GBP 250 in submitting !

@trephena Period 32 Comment 1. Evaluation of information, analysis and conclusions You have not used your comparator effectively. The point is not to discuss their performance or compare the two in absolute terms but to identify when ratios have moved in different directions which indicates differing internal management decisions as opposed to when they move in same direction which would suggest external factors at play Any suggestions on ensuring the above is not done. And what proportion of the fin analysis do u recommend shud include comparator analysis?

The main issue with evaluation in relation to the comparator is that it must be more than just commenting that one company outperformed the other and by how much (as this should all be obvious from the graphs). The comparator analysis should not be in a separate section after the analysis of the main company -it needs to be integrated. You then need to come up with proper reasons that account for the differences in the two companies' results e.g. how factors from the SWOT and PEST have impacted and/or influenced management decisions. I cannot give strict proportions of how much the comparator analysis should take up as it depends on each ratio. For some there will be more to discuss than for others.

@ch305 said: In relation to below.. I see many problems with Emirates... Is the time left sufficient for the analysis if I move over to another company or topic perhaps?

Still one month left, so it is possible if you dont have other time consuming commitments.

@trephena How can someone analyze an airline comparing on 3 years and than do comparator for 3 years again, all in 4500 words limit count which also include business analysis. is there any sample work to get an idea how it could be properly done? how many ratio should ideally be enough in financial analysis?

@saan - this is perfectly possible if you are sensible about word use. 1. The total word count is 7,500 within that limit it is immaterial how many words are within a section 2. Cut out anything superfluous: this includes telling the marker why you chose the topic in the report (save it for the SLS); talking about primary data (when you are only using secondary data) and repeating what the graphs say (good graphs show, so you don't need to tell as well). Avoid citing lots of routine figures and percentages in the text, focus on significant differences. 3. Read through you work (or better still get a family member to read it) - if they find it difficult to sort out the muddle of numbers you are throwing at them -take it as a warning sign that your report is on the wrong track and if it is mot addressed you are likely to bore and make the marker suffer 'death by numbers' There used to be some exemplars on the OBU website but the University warns students not to use templates and samples from other students. Be very wary of mentors who give you prepared spreadsheets and templates for presentations for reports as many students using these end up as Academic Conduct Office cases and some end up with not just being failed but having to pay the GBP 550 penalty fee if they want to resubmit!

@trephena Thank you very much for the detailed response, your advice is invaluable. I have read few samples just to get an idea what thesis look like, I hope this is not an issue. I found Comparator's role very difficult to understands. It seems to me that I am studying two companies which not only doubled the workload but also going to impact on the word count. How many ratios do you think should be included as minimum?

@trephena If I am using a ratio from cashflow statement do i need to have an appendix for Cashflow statement like income statement and balance sheet.

@saan - As I said before it is a case of using the word count judiciously - anything that does not add value should be cut. In terms of passing and getting a good grade the evaluation and analysis is everything and therefore you do not take chances with it. @amal3008 -yes as the marker needs to know where your figures are coming from.

@trephena, On comparator response by examiner, what I was able to understand is if both companies are going into the same result e.g. declining fuel costs for both of them, then no need to go in detail for comparator (due to external issue, fuel prices) BUT if main company's fuel costs are declining and comparator's increasing then there is a need to explain why comparator's results are different? Do you think this is a right interpretation?

Hi Saan, To our knowledge, Trephena is away for a few days and while we dare not presume that we are on par with her, do allow us to toss our hat in the ring and provide a reply to that. 1) If both companies are experiencing the same results, should you go into the details? It depends how critical the item is. For example, both companies having low liquidity ratios, for airlines, that is relatively common due to the cash flow model whereby passengers pay upfront. Not too much to talk about. Relatively speaking, it doesnt heavily impact profits and performance either. However, for declining fuel costs, it is a significant feature in the performance of any airline. There are areas to explore such as hedging and also how the company who did not hedge as much (and thus enjoys the current low prices) is using it's advantage eg is it slashing prices and grabbing market share? There are nuances within such a loaded item that even if both airlines are performing in a similar direction (ie margins are up due to lower fuel costs), we still think you should analyze it deeply. Conclusion: When results are similar, your depth of analysis would depend on how critical that item is in explaining performance. 2) When there is a strong difference between the ratios of one company versus another, then yes, absolutely yes, you must analyze it deeply and explain why. Hope this helps! The Learning Luminarium

@LearningLuminarium Hi, Yes Trephena is such a nice person. I am very grateful that you have responded in a timely manner and beautifully explained my inquiry. It is much more clear now. Thank you very much.

@trephena while doing analysis, debt (borrowing and lease liabilities) have increased but interest expense reduces. shouldnt interest expense be in line with debt, since bonds and loans will have interest liability.

Also, my mentor insists me on using investor ratios, but i cant find any, since emirates airlines is not a listed company. is there any investor ratio that could be analysed well and does not include share price or number of shares. if i dont use any investor ratio, will it affect my grade. i have already crossed the word limit and cant use any KPI (revenue passenger km, yield, etc) as well.

@amal - while it generally should move in the same direction, it is possible for overall debt to increase, yet have interest expense reduce. This would be due to the interest rates of the new/refinanced debt being lower than the initial ones. Investor ratios - In our experience, we have found them to be good but optional. For those with word limitations, we have usually guided them to focus more on the ratios that explain underlying performances - profitability, gearing, liquidity and efficiency. With due respect to your mentor though, he knows your report and situation much better than us so I suggest you discuss this further with him to understand the rationale for his suggestion.

@LearningLuminarium Thanks a lot for your prompt advice. i will follow your advice and enquire with my mentor as well. However i found most of OT advices more useful than my mentor's.

Hello everyone and Learning Luminarium Bit of an odd one here. My mentor has gone MIA on me after two meetings. With just a few weeks left I am meant to be doing my presentation as my RAP is done. Any ideas on mentoring firms to approach ? or a mentor in mind? I really need to submit this May. Thank you

Just a small clarification. As per OBU information pack, which states that "If the company's financial statement are published in any form less than 90 days before the start of submission do not have to be used" The company which i have selected, there financials for 2016 were published on 6 march 2017, which equals to 70 days and which is less than 90 days As result i did not waited till there financials were issued and I have used 2013, 2014 and 2015 financials. As a confirmation is it correct what I have done as it would have been difficult for me to rap up every thing in two months. Thank you inn advance.